You Can Still Save Thousands When Buying a New Car!

Written by Sheryll Alexander
Date : 10/27/2009

With this summer’s “cash for clunkers” program being so popular, many Americans have neglected a new vehicle tax incentive that went into effect this spring.

Congress was hoping these tax breaks would boost car sales. “Cash for clunkers” stimulated car sales this year, but you can still take advance of this above-the-line deduction for state and sometimes local taxes. Plus, this deduction holds true for those Americans who itemize their deductions as well as those who luckily do not itemize.

The deduction applies to domestic and foreign cars and even SUVs, light trucks, motorcycles and motor homes. The amount of the deduction is roughly equally to the sales tax on your new purchase, which can add up to several thousand dollars.

Here’s some other factors on the 2009 sales tax break:

Sales tax paid on lease agreements do not qualify
Sales tax can only be deducted on one vehicle and only on cars priced $49,500 or less.
Households earning more $125,000 gross income ($250,000 for joint return) do not qualify.
Plug-in electric cars gets an additional tax credit of $2,500 minimum.

The holidays are approaching and 2010 is looming. This may be the time to get your tax deduction along with your brand new 2009 or 2010 model car.

For new car buying (and saving!) inspiration, here are some of my favorite 2009-2010 cars, CUVs and SUVs:

The redesigned 2010 Mazda MAZDA3 hits all the right notes with its low price tag, sophisticated modern design inside and out, exhilarating zoom-zoom performance and handling and a rather luxurious interior. Plus, the 2010 MAZDA3 has top notch fuel economy at 33 mpg hwy and 25 mpg city.
The 2010 Ford Fusion Hybrid has what families need: form and function at a low price, excellent fuel economy (41 mpg city, 36 mpg hwy), a roomy and comfortable interior, quality materials, seriously fun performance and Ford’s way cool SYNC connectivity system.
The 2010 Chevrolet Traverse is an exceptional crossover utility vehicle (CUV) for large families. With a seating capacity for seven, the 2010 Chevy Traverse also has loads of standard luxury features, lots of leg and cargo room, top safety marks, excellent design inside and out, overall great driving dynamics, advanced technology and pretty good fuel efficiency (24 mpg hwy, 17 mpg city).
The 2010 Buick LaCrosse is a full-sized luxury sedan woth sexy Euro-Asian design outside and excellent performance, but the interior is truly cool with a truly unique central console and TV screens built into each back head rest.
The 2009 Suzuki SX4 Crossover is a best buy for heavy commuters and busy families with its low price, standard navigation, zippy performance, ergonomic interior, excellent safety and lots of cargo room. If you are seeking an all-wheel-drive vehicle for inclement weather, go for the Suzuki SX4 Crossover, which comes as a five-door hatchback model.
The 2010 Subaru Legacy comes as a sedan, but also in a wagon version that’s perfect for families or active people who live in cold climates. Subarus come with lots of standard features, Subaru’s incomparable all-wheel drive, excellent performance, lots of room and good fuel economy.
The completely redesigned 2010 Honda Insight is a top mid-sized sedan for drivers who love great design both inside and out, great fuel economy (40 mpg city, 43 mpg hwy), great performance and loads of standard features.
The third generation 2010 Toyota Prius has garnered much acclaim because this mid-sized sedan is still the most fuel efficient car (51 mpg city, 48 mpg hwy) on the road today. Plus, the 2010 Prius is a good deal with its rather low price, quirky design, high quality, zippy performance, top safety rankings and advanced technology.
The 2010 Volkswagen Jetta SportWagen TDI is at the top of my list for fun-to-drive, fuel-efficient (estimated 41 combined mpg) and super low emissions car. This diesel-powered sport wagon truly has excellent performance and great overall versatility.
The 2010 Chevrolet Equinox has been completely redesigned by GM to reveal a top contender for best 2010 compact crossover (CUV). The Equinox gets top in class fuel economy (32 mpg hwy, 22 mpg city) as well as excellent performance and interior design.
The all-new 2010 Lincoln MKT is one of the best-designed crossovers (CUVs) today. Dad will love the brash American styling and mom will love the roomy interior, loads of cargo space, top safety marks and Ford’s SYNC connectivity system with Sirius TravelLink and weather forecasting.
The 2010 Honda Odyssey is still the most plush minivan in America. Yep, Honda’s Odyssey may be the best family vehicle ever with its loads of standard features, excellent performance, top safety marks and tons of high-tech options.
The 2010 Nissan Versa is still the lowest-priced new car on the market today. For 2010, the exterior has been delightfully refreshed and there’s added safety features. For less than $10,000, you can own a new car with Nissan’s top quality, great fuel economy (34 mpg hwy, 28 mpg city) and rather zippy performance.